I heard this week about a newsagent who relied on someone who claimed they could get a better lease deal and ended up paying more per square metre than a nearby competitor. The lease negotiator they used negotiated the lease for a couple of newsagencies that went broke on the back of what I’d saw were poorly negotiated leases. I say they were poorly negotiated because I saw the leases and would not have agreed to them myself.
It is easy to claim to help newsagents get a better lease. Achieving a good lease requires a good business or business plan from the newsagent, diligent professional work, a co-operative landlord and a lease professional who has no vested interest other than getting the best lease deal for you.
If a newsagent asks me for lease advice, especially one in a shopping centre, my advice is to pay for the services of an independent lease professional.
Too many newsagencies have gone broke in recent years on the back of leases negotiated by parties with a vested interest. This is why I say buyer beware of people who claim they can negotiate a better lease for you.
Be inquisitive about any marketing pitch by someone or a business claiming they offer lease negotiation services or that they are favoured by landlords. Seek evidence. Seek clarification. Get it in writing and do your research.
See if the claims about lease negotiation stack up to the test of history.
Anyone can make a claim in their advertising and marketing. The truth is what matters and I know of former newsagents who would say that they wish they had done their research before believing they would get a better lease through a specific party.
Ask for before and after evidence in writing. Ask for their most recent references. Don’t accept their word, accept only proof of good they have done.
Even ask for advice from a friend or someone in whom you have trust. Don’t be afraid. The alternative is you trust them and maybe find that the lease they negotiate for you is the worst business decision you even made.
A bad lease can cost you hundreds of thousands of dollars, your home, your health and even your family. There are former newsagents with stories they could share.
This post is about no one person or business. The advice is advice anyone with your best interests at heart would give.
Good advice. Sadly, too late for a friend.